FRA

Missouri’s Federal Reimbursement Allowance program directly benefits Missouri’s economic and health care infrastructure. This highly successful public/private partnership serves as a model of vision, creativity and cooperation.

FRA History
Nearly 20 years ago, Missouri’s health care and governmental leaders were facing significant budgetary challenges. In response, the FRA program began in 1991 as a voluntary program; it was expanded and enacted into law as a provider tax in 1992. Hospitals provide funds to the state, and Missouri’s Medicaid program (now called MO HealthNet) uses these funds to earn federal matching dollars.

The FRA program has evolved to maximize federal matching dollars and reduce the burden of MO HealthNet on state general revenue. The FRA is a major source of revenue to the state, surpassing all but the two largest sources of general revenue. Today, it is a major funding stream for MO HealthNet. This releases traditional general revenue to be used for other state priorities.

FRA Assessment
In state fiscal year 2009, paid an assessment of $847.2 million to help finance the state’s MO HealthNet (Medicaid) program. Through this assessment, the state earned a federal match of $1.5 million that was was used to provide health services to uninsured Missourians.

FRA and Missouri's Economy
A report series from MHA demonstrates the FRA's importance as a funding source for the MO HealthNet program. The FRA is a major source of revenue to Missouri, surpassing all but the two largest sources of general revenue. Highlights from the report follow.

• The FRA is a highly successful public/private partnership that directly benefits Missouri’s economic and health care infrastructure.
• The FRA allows lawmakers to use traditional general revenue for other state priorities.
• In state fiscal year 2009, FRA provider taxes leveraged $1.5 billion in federal matching funds.
• Sources of MO HealthNet spending in SFY 2009:
  • Hospital provider taxes – $847.2 million
  • Other provider taxes – $292.9 million
  • State general revenue and general revenue equivalents – $1.6 billion
  • Federal matching funds – $3.2 billion
• The FRA has had broad bipartisan support for nearly 20 years throughout five administrations.
• The FRA is another way that hospitals provide major economic benefits to Missourians.

Learn More

• Read MHA's FRA Report
• View Milestone's of Missouri's FRA Law
• Contact MHA

MHA-Member Hospitals Only
FRA Reports and Forms
 

FRA Articles